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|Project manager||Bernt Bratsberg |
|Client project no.|
|Period||2014 - 2014 (ended)|
The project studies the evolution of employment and earnings of post-EU accession Eastern European labor immigrants to Norway during the financial crisis. We find that the migrants were particularly vulnerable to the negative labor demand shock generated by the economic slump. During the winter months of 2008/09, the fraction of immigrant men claiming unemployment insurance benefits rose from below 2 to 14 percent. Some of this increase turned out to be persistent, and unemployment remained considerably higher among immigrants than natives even three years after the crisis. Although we find that negative labor demand shocks raise the probability of return migration, the majority of the labor migrants affected by the downturn stayed in Norway and claimed unemployment insurance benefits.